Taiwan KGI Securities is planning a Hong Kong listing to consolidate its businesses in the city, Thailand and Singapore.
The assets to be floated will include the company’s businesses in Hong Kong, a 35 percent equity stake in a Thailand subsidiary and its futures business in Singapore, the Hong Kong Economic Journal reported on Thursday.
The brokerage is ranked among the top 20 in Hong Kong in terms of market share in a sector where there are more than 400 players.
Eddy Chang, a spokesperson for parent company China Development Financial Holding Corp., said the brokerage will use the proceeds to replenish capital, the Hong Kong Economic Journal reported.
Chang noted that rivals have been strengthening their market position through mergers and acquisitions, initial public offerings and capital injections.
The company posted a revenue of NT$4.27 billion (US$135.75 million) in the first quarter this year, up 30 percent from a year ago.
Its Hong Kong subsidiary contributed over 30 percent to the group’s revenue during the period.
Meanwhile, Benson Wong, assurance partner at PwC Hong Kong, said in a media briefing that Hong Kong remains the favorite choice of mainland companies as listing venue despite the recent volatility in its stock market.
Wong said listing candidates affected by China’s decision to suspend new listings are expected to queue up in Hong Kong.
Such a trend may help Hong Kong regain its status as the world’s No. 1 IPO market in terms of fundraising size this year, he said.
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